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TRANSFORMING The Northeast’s Older Home Market with ENERGY EFFICIENT MORTGAGES

TRANSFORMING The Northeast’s Older Home Market with ENERGY EFFICIENT MORTGAGES. © 2007 Northeast Home Energy Rating System Alliance. Home Energy Ratings (HERS) and Energy Efficient Mortgages.

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TRANSFORMING The Northeast’s Older Home Market with ENERGY EFFICIENT MORTGAGES

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  1. TRANSFORMING The Northeast’s Older Home Marketwith ENERGY EFFICIENT MORTGAGES © 2007 Northeast Home Energy Rating System Alliance

  2. Home Energy Ratings (HERS) and Energy Efficient Mortgages • A timely national program with significant consumer benefits including increased home ownership opportunities • Regionally implemented in New England in collaboration with the Northeast HERS Alliance

  3. Regional Mission The mission of the Northeast Home Energy Rating System (HERS) Alliance is to stimulate demand for and create housing that is energy efficient, affordable, and comfortable. Natural byproducts of these qualities include greater safety and durability, more resource efficiency, and reduced pollution.

  4. Create a slide about your own business • ENERGY STAR HOMES Ally

  5. A Timely Opportunity • Rising mortgage interest rates • Home heating costs are sky-rocketing • Existing New England homes are not very energy efficient

  6. What is a HERS “Energy Rating”? • HERS is a uniform national system for evaluating a home’s energy efficiency • Produces an “index” score that compares the efficiency of the home to one built to comply with the minimum energy code.

  7. HERS Rating Process A HERS Rating includes: • A comprehensive evaluation of the building envelope and the heating and cooling systems • Data analysis using nationally approved rating software • Recommendations for the most cost-effective improvement measures • Final score after measures are installed

  8. Why Use Energy Ratings? • To recommend cost-effective energy improvements or new home construction options for energy efficiency • To objectively quantify future energy cost savings benefits for each item recommended

  9. Energy Improvement Opportunities • Greater insulation • Reduced air leakage • Heating system upgrade • High efficiency water heater • Quality storm windows

  10. What are Energy Mortgages? • Result in lower utility bills, therefore reducing total housing costs. • Provide homebuyers with greater monthly cash flow. • Two types: • Energy Efficient Mortgages • Energy Improvement Mortgages

  11. Energy Efficient Mortgages • For homes that are already energy efficient (typically new construction) • Allow lenders to s-t-r-e-t-c-h debt-to-income ratios

  12. Energy Improvement Mortgages • Help improve existing home value so the buyer gets a better home • Allow the lender to incorporate the cost of energy improvements into a first mortgage.

  13. Which Homes are Appropriate? Most homes built before 1980 have the potential for significant energy savings!

  14. How Will Home Buyers Benefit ? • By Solving their energy problems • By Reducing their energy costs and making home ownership more affordable • By Increasing their home’s comfort and resale value • By helping them Qualify for a mortgage

  15. How Will Lenders Benefit? • Increase loan size and volume • Create a market niche • Provide excellent customer service • Qualify more first-time home buyers • Reduce the cost of home ownership • Solve customers’ energy problems

  16. How Can Realtors Benefit? • Attract attention in a competitive market • Make certain homes more affordable and attractive • Give first-time home buyersa greater choice in homes • Get moreclient referrals

  17. Energy Mortgage Products are Available From: Freddie Mac FHA Fannie Mae USDA - Rural Development VA Or, lenders can develop their own in-house program.

  18. Home Energy Ratings • Contractor Arranging Service • Lender Training • Developing Co-Marketing with lenders, non-profits, Realtors, and builders Our Key Services

  19. Home Energy Rating Service As part of our services, we • Explain the HERS and EEMs to buyers. • Inspect and test the home, perform “as-is” Energy Ratings. • Recommend energy improvements. • Document work completion, re-rate the home, and inform lender to release escrow.

  20. Contractor Arranging Service • Prepare detailed specifications for proposed energy improvements. • Manage the collection of firm-fixed bids from contractors. • Help homeowner select contractors. • Contract Preparation • Document work completion, re-rates the home, and informs lender to release escrow.

  21. Let US help sell the program to your clients

  22. Co-Marketing and Collaboration • With Lenders to market and process EIMs / EEMs • With Real Estate Brokers to market energy ratings to their clients • With Non-Profit Housing Developersto help them qualify more buyers.

  23. Help Your Customers Buy Smart! …with Home Energy Ratings and Energy Mortgages

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